Not sure if this has already been reported, but:

The UK edition of the November GQ magazine includes an article on the late Michael Hutchence which includes an anecdote about Prince from the World Music awards in 1994. I believe the 'friend' Prince is reffering to is Helena Christensen.

'By 2AM, Hutchence is so happy he bursts into tears, tells me how much he loves his girlfriend and tries to slow dance with Prince Albert. Then he spots the other Prince....

The artist formerly known as the artist formerly known as had played at tonight's awards and, in an unusually sociable manoeuvre, is unwinding with a few friends and a pint of mild in the corner of the club. He hadn't banked on meeting a steaming Australian lunatic.

"Prince, you tosseur!" hollers Hutchence, even in his acute drunkeness managing to make the insult sound unthreatening and charming. "You leeetle artiste you!"

To his eternal credit Prince remained cool. Amused even. At one stage, as Hutchence delivered his latest good natured insult, the small fellow mouthed "Who's your friend?" Oblivious Hutchence approched the DJ and insisted that he play some Prince. The dance floor duly filled to the strains of 'Cream' and 'Kiss'. Hutchence danced badly; Prince sat it out. Then, having long since forgotten his request, Hutchence began to berate the DJ for playing too much Princeand not enough INXS. "Put on something by that Michael Hutchence guy" he bawled.
"He's great!"